creative. barely.

Pinch vs. Punch

The difference between a pinch and a punch is as simple as preparedness. Being prepared for obstacles and setbacks means that your business will feel a pinch, rather than a punch.

Do you have a client(s) that makes up more than 25% of your revenue? If so, losing one would be a gut punch to your bottom line. If each client took up no more than 15%, that punch would be a pinch. Uncomfortable, but not impossible to overcome.

In the personal finances realm, this is called rainy day funds or emergency fund. In the business realm, it’s called being smart.

Action Steps:

Know your business and where you make your money.

You’ve heard the saying “hope for the best, plan for the worst.” I prefer to plan for the best, be ready for the worst.

Make a plan to avoid being – or move away from being – beholden to single or limited sources of revenue (clients). A golden goose is great, for a season, but being ready for the day the goose flies, is greater.